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PSU banks

Discussion in 'Fundamental Analysis' started by saptarshi_sachin, Jul 21, 2013.

  1. saptarshi_sachin

    saptarshi_sachin Responder

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    Hi All,

    Almost all PSU banks are in & around their 52 week lows or if I exaggerate, they are around their 2 yr lows.
    To name a few:
    PNB
    Bank of Baroda
    Bank of India
    Allahabad bank

    The reasons are (as it seems to me) are bad loan exposure, higher NPAs.
    But fundamentally, stocks like bank of baroda and PNB are available at cheap valuations - hovering around their 52 week lows. In case of BOB, PNB they are below their 52 week lows. To my sense, both these are large banks with fundamentally good dividend paying history. Can one start accumulating BOB & PNB at these levels or should wait for upward breakout?

    Requesting your views in the above stocks with timeframe as next 2 quarters ( 6 months).
     
    saptarshi_sachin, Jul 21, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    I would prefer waiting because if you try to catch the falling knife, you will have lots and lots of pain. Let the stock form a bottom because you are not the only one who knows about it being falling. So let others decide the bottom and then you can think about it.
     
    shabbir, Jul 22, 2013
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  3. saptarshi_sachin

    saptarshi_sachin Responder

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    Thanks Shabbir da.
    I would wait rather than jump now and accumulate.
     
    saptarshi_sachin, Jul 22, 2013
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Jul 22, 2013
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  5. sainath85

    sainath85 Member

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    @saptarshi_sachin i used to track Indian Financials. I would suggest you to wait till RBI July Policy. Having said that PNB, BOB, BOI, UNBK could give at least 50+% returns.
     
    Last edited by a moderator: Jul 16, 2017
    sainath85, Jul 22, 2013
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  6. saptarshi_sachin

    saptarshi_sachin Responder

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    Thanks Sainath.
    RBI policy is on July 30. Would wait till the policy and also for other members' views.
    Requesting to keep this thread up with your views as well.
     
    saptarshi_sachin, Jul 22, 2013
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  7. sainath85

    sainath85 Member

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    hope you did not buy..PSU stocks got hit very badly today. I think RBI might increase or hold rates on July 30th. No hope for rate cut now :(
     
    sainath85, Jul 24, 2013
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  8. saptarshi_sachin

    saptarshi_sachin Responder

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    No Sainath I didn't. How can I when people replying to this thread cautioned me about this.

    RBI is hell-bent on doing something which restricts the rupee slide further, thus creating pain for banking stocks.

    Would want this thread to be kept alive with views. Thanks Sainath!
     
    saptarshi_sachin, Jul 25, 2013
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  9. naveen1241

    naveen1241 Responder

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    What about Canara Bank, Karur Vysa Bank, Dena Bank, Corporation Bank? I would urge someone following these stocks or planning to buy to keep the thread alive.

    Thanks
    Naveen
     
    naveen1241, Aug 4, 2013
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  10. saptarshi_sachin

    saptarshi_sachin Responder

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    Hi All,

    Again reiterating....
    How about looking into BOB or PNB now?
    Just for the facts, BOB has broken down around 17-18% in the past 5days (1week). BOB had results last week, and declared poor nos.
    But I don't see any logic how can BOB get beaten down 17% in past 5 days.


    And Naveen,
    Canara Bank, Dena Bank, Corporation Bank all are looking like good bets.
    I'm not sure of Karur Vyasa Bank as it is a private sector bank, not a PSU.
    I personally prefer Canara Bank out of your choices.
    For the facts:
    Canara Bank has been declining since mid-May, 2013.
    In the past 6months, Canara Bank has given a return of -48% (stock has almost halved).
     
    saptarshi_sachin, Aug 4, 2013
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